This depends on the neighborhood, material/finishes, custom touches, new roof, HVAC, electrical, plumbing, and ARV.

There is a time factor that needs to be accounted for as well.In my opinion - you will need to be able to reasonable achieve 2-3x the rents vs. the alternative for room rentals to be worth the squeeze.I'd check to see what other folks are renting individual rooms out for to see if it makes sense diving into.

They instead use an alternative method separate from both of the mentioned methods.

Bars will be on the windows (crime reference above).Don't be surprised if your cheap purchase costs that much or more to repair as your repair costs will be much higher than a home built with more modern materials, such as in the 1940s-1950s.

I would look for alternative land options that you could use for RV parking since RV parking at homes is very difficult and people don't use their RVs much, but there are a lot of RVs in Texas.

Alternatively you could use a 1031 exchange and put all that equity into one large cash flowing multi-family commercial property with property management. 

In my state, owning an LLC is quite expensive (800/year), so the risk/reward calculation is a little more skewed, but still generally makes sense for larger MFR deals.The debate really heats up if you're talking about residential class (1-4 units) as there are material advantages to owning under your personal name.

Materially participate in crafting your goal(s), your plan (working backwards from your specified goal(s).  

We have Lowes and other accounts to purchase materials for repairs or renovations.

So it's possible that the assignee might decide to cut his losses and forfeit the fee amount he already paid in.Regardless of why this might happen (which is really immaterial), the questions I should have asked are:How frequently (percentage of a wholesaler's deals) does it happen that a buyer backs out of the assignment, andWhen it does, how successful are you in pursuing the alternatives mentioned in Dustin Heiner's article?